Tips on eliminating your debts

One way to manage your personal finance is to get rid of all your debts and credits. As much as possible, live a healthy life without having debts and if you have one, make sure that it is not greater than what you receives on your pay check. Like what they always say in investing through Fintech LTD. Make sure you use a wise decision in investing. Here are the following tips in order to slowly eliminate all of your debts:

Try to avoid getting into debt as much as possible.

First things first, as mentioned above, do not engage in debts. A good rule to keep in mind is that when you are planning to purchase an item (except for car and house) and you can’t pay it with cash, then you cannot afford it at all.

Create a spreadsheet.

In order for you to motivate yourself into paying off all your debts, you might want to create a spreadsheet where you put all of your monthly payments and all other balances that you have to pay then sum it all. As you are paying off all your debts, update it and observe how the overall balance decreases. This will encourage you to eliminate all of your debts.

Do not own multiple credit cards.


As much as possible, have only one credit card that you can use. Do not own multiple credit cards as it will provoke you to use it. And also, make sure that the monthly payment will not exceed about 25% of your monthly salary.

Create an emergency fund.

This is very useful because once you have an emergency fund, you can use it to pay off all your debts and eliminate it all at once.

Do not overpay.

This may contradict your goal into eliminating your debt all at once but make sure you still have enough money for your daily expenses. Chances are, you will be forced into getting another credit once you cannot pay off your daily expenses because you’ve overpaid your debt.

Think of the future expenses.

Are there future expenses that you need to pay off? You might want to think about it so that you can prepare when time comes and avoid getting into debts.

Set up a budget.

This is very common but if you really want to manage your money properly, you have make sure that you have created a budget and stick to it as much as possible.

Stop spending money

If you don’t need a new phone, then don’t buy it. It’s not about catching up with the latest trend, it’s about having financial freedom and managing your personal finance by eliminating your debts. Learn to discipline yourself and make sure that you are not spending your money on unnecessary things.

Eliminating debt may seem like a little intimidating to you especially if you have lots of monthly bills and payments that you need to pay off. But with discipline, perseverance and determination you can pay it off slowly. One day, you’ll just wake up debt-free and you’ll be able to manage your investments like in Fintech LTD wisely.